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IRELAND - IFA National Dairy Committee Chairman Sean O’Leary has welcomed the announcement by Glanbia that, in addition to a 1c/l increase on August milk, they will pay a 1c/l bonus on all milk supplies produced in the January to June period.

He said this is very clear vindication of IFA’s view that 2017 market returns justify higher prices for farmers, and he urged other co-ops to take heed in their forthcoming milk price decisions.

Mr O'Leary said: "In returning an additional 1c/l on a significantly increased first half output, Glanbia will be helping its suppliers to replenish their finances after three very challenging years.

"However, we are clear that, despite the butter/SMP imbalance all are keen to point to, combined market returns in 2017 have evolved more positively than might have been expected, and justify higher milk prices.

"Over 35 per cent of all annual supplies are produced between August and December, and I urge all other co-ops to think carefully before deciding on August milk prices – farmers must be able to expect stronger milk prices for the back end, to reflect what remain very positive market trends for the period."